The AES Corporation (NYSE: AES) announced a reorganization as part of its ongoing strategy to simplify its portfolio, optimize its cost structure and reduce its carbon intensity.

“Our new structure will accelerate our transformation to an energy company of the future. These changes will allow us to quickly capitalize on opportunities by delivering safe, reliable and affordable energy solutions that create shareholder value,” said Andrés Gluski, AES President and Chief Executive Officer. “Today’s announcement continues the progress we have made to-date on our strategy, including focusing our geographic footprint down to 16 countries from 28, implementing our previously announced cost savings initiatives, and reducing our carbon intensity by bringing new energy solutions to the markets we serve.”

Reflecting AES’ simplified portfolio, AES is consolidating its five Strategic Business Unit structure and will now manage its global operations and infrastructure activities under Executive Vice President and Chief Operating Officer, Bernerd Da Santos.

The Company also has reorganized its growth and commercial activities into three new units. These units will be led by three existing executives:

Executive Vice President and Chief Financial Officer, Tom O’Flynn will continue in his current role and assume additional responsibility for leading the US Renewables growth unit;

Manuel Pérez Dubuc will lead a consolidated South America growth unit that includes Argentina, Brazil, Chile and Colombia; and

Juan Ignacio Rubiolo will lead the Mexico, Central America and the Caribbean growth unit.

The new leaner organizational structure reflects the simplification of the Company’s portfolio and cumulative investments in IT, and will result in a lower headcount and overhead costs. This initiative supports the Company’s objectives of achieving investment grade metrics by 2019 and delivering attractive returns. The Company will provide additional detail on its upcoming Fourth Quarter and Full Year 2017 Financial Review Call on February 27, 2018 at 9:00 AM Eastern Time.

The new organizational structure will also accelerate the application of new technologies in AES’ existing businesses. With the acquisition of sPower last year, the largest independent solar developer and operator in the US, the launch of Fluence, the Company’s Joint Venture with Siemens and a leading provider of battery-based energy storage around the world, new renewable projects in development or under construction in the US, Mexico, Brazil, El Salvador and Jordan, and the addition of an LNG terminal and gas plant currently under construction in Panama, AES is delivering on its goal to reduce its carbon intensity and accelerate a greener energy future in the markets it serves.